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Asset Class Introduction: Private Equity

The Author
Morgan Stanley Private Equity Solutions
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Asset Class Introduction: Alternatives

The term “alternative investments” is broad and, in our view, not particularly descriptive or useful. It encompasses all strategies that cannot be accessed through traditional equity and fixed income solutions. These strategies have the potential to address many of the challenges that investors face today—the need for enhanced income, inflation protection, diversification, and stability amid volatile markets.Read More

Asset Class Introduction: Semi-Liquid Evergreen Private Equity

With more than 99% of the 33 million businesses in the U.S. being privately held, institutional investors have long used private equity (PE) as a means to tap into this vast ecosystem of private companies. The reason is clear: returns from private equity have consistently ranked among the highest of any asset class on a 5-, 10-, 15- and 20-year basis.Read More

Most investors are familiar with traditional investments, which include cash and long-only positions in publicly traded stocks and bonds. Alternative investments are comprised of more complex investments and include private strategies focused on illiquid holdings. Within the private alternatives universe, asset classes include private equity, private credit, real estate and infrastructure. Among these asset classes, private equity is one of the most rapidly growing with assets under management quadrupling over the last two decades from $744 billion in 2004 to $9.7 trillion as of December 2024.

Key Takeaways

  • In the last several years, individual investors have increasingly embraced semi-liquid evergreen funds to access alternative investments. A shift can also be seen in the institutional market and with family offices.
  • With no drawdown period, evergreen funds provide immediate access to a diversified portfolio and may have the ability to provide some liquidity in a traditionally illiquid asset class.
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